Originally Posted by
Dharma
Initial investments don't always lead to JV agreements. If the company is just looking at having a window into the decision making process of a foreign company a smaller investment (maybe around the 5% level... I don't know exactly) that gives a seat on the Board allows that. An example is Gol. We don't have a JV with them, hence no derivative contracts that are convertible to shares.
Pension fund investments are reported on SEC form 13F, but you won't find that info under an SEC search for DAL. The pension investment Delta made in Grupo Aeromexico (I think 4.6%) was reported on that form.
Discussions by Delta leadership about these sorts of investments occur at Board meetings which is why it is so important to have a seat on the Board. The voting seat was put in place as part of the DAL/NWA merger agreement.
I hadn't seen the info you posted via the above link, but a person does have to ask, "what is Delta going to use that $1 Billion for?" I mean we're drowning in cash. What need does Delta have for an extra $1 Billion?
It's actually $2B in two separate offerings. The pension holdings are only quarterly as far as I am aware. The shift in assets is not required to be disclosed unless they reach a threshold. AM was initially a smaller ownership level, then the tender for 49%.
This business plan is to acquire and form joint ventures. The GBH are now set so there will be no requirement for increased Delta flying, just a shift if we move out of or into a theater.